Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Investor Day (September 2021)
53 slides from Aktia Bank Plc Class A's investor day presentation, Sep 8, 2021
Slide 1: Aktia CMD
Aktia CMD Helsinki, 8 September 2021
Slide 2: Aktia's Strategy
Aktia’s Strategy Mikko Ayub, CEO
Slide 3: 200 years of banking
200 years of banking Strategy lifts up Aktia’s asset management The modern Aktia is individual wealth was rewarded for instance a result of a merger management and Aktia expanded the sale of its with Morningstar and Lipper between eight financing. special expertise in emerging Fund Awards prices. sa
Slide 4: Aktia in short
Aktia in short 30 June 2021 (Approx.) EUR 15.6 billion EUR 11.2 billion 39,000 EUR 760 million Customer assets under Market cap Balance sheet total Shareholders management (AuM) 260,000 900 Private customers Employees Finland’s Rating Long-term Short-term Outlook borrowing borrowing Covered bonds 20
Slide 5: Aktia's business areas and reporting business segments
Aktia’s business areas and reporting business segments Business areas Banking Asset Management Life Insurance Banking Asset Management Group Functions Private, corporate and Asset management and Group’s centralised functions institutional customers life insurance business incl. financing and liquidi
Slide 6: A well balanced business portfolio
A well balanced business portfolio 1–6 2021 Share of total operating income 1−6 2021 Share of comparable operating profit 1−6 2021 EUR 135.4 million excluding Other & eliminations EUR -4.2 million EUR 42.9 million excluding Other & eliminations EUR 0.0 million Total EUR 131.2 million Total EUR 42.9
Slide 7: Key highlights from the strategic period
Key highlights from the strategic period through the lens of our strategic priorities defined in 2019 Win in asset management • The merger of two strong asset managers Aktia and Taaleri Wealth Management • A co-operation agreement with Taaleri Oyj that supports the strategy of both parties going for
Slide 8: Aktia's Strategy
Aktia CMD Aktia’s Strategy AKTIA CMD 2021 8 September 2021 8
Slide 9: There is a growing need for comprehensive wealth management
There is a growing need for comprehensive wealth management Climate change SUSTAINABLE Technological and over-exploitation INCREASING INVESTMENTS AND development WEALTH FINANCE of natural resources continuously opens new, digital People are getting Sustainability is a driver of long- call for respon
Slide 10: The roles of our Business Areas in executing strategy
The roles of our Business Areas in executing strategy Asset management The spearhead and anchor in Aktia’s strategy. The primary wealth manager partner for institutions, high ASSET net worth individuals and entrepreneurs. Offers best-in- MANAGEMENT class competence in spearhead strategies combined w
Slide 11: Focus on guiding customers to our focal point
Focus on guiding customers to our focal point Growth in our strategic sweet-spot Focus on excellent customer experience Offering comprehensive wealth ASSET MANAGEMENT and offering for single product customers management to our target segments, including wealth plans, financing, asset management serv
Slide 12: Taaleri integration proceeding as planned
Taaleri integration proceeding as planned • Taaleri Wealth Management has matched our pre-transaction understanding • A closer evaluation of the synergy potential has matched our pre-transaction understanding • Operational take-over and business continuity completed smoothly • Integration projects a
Slide 13: Our three strategic priorities
Our three strategic priorities 2025 1 OUR VISION Win in wealth management The leading wealth A) The most preferred wealth manager among private and institutional customers manager bank B) Success in integrating Taaleri Wealth Management OUR MISSION 2 Building wealth for our Growth among customers wh
Slide 14: Aktia Financial Prospects
Aktia Financial Prospects Outi Henriksson
Slide 15: Financial summary YTD
Financial summary YTD EUR million 1-6/2021 1-6/2020 , % Total operating income 131.2 94.7 39% Net interest income 49.0 39.8 23% Net commission income 56.8 48.1 18% Net income from life insurance 20.4 4.9 315% Other income 5.0 1.9 168% Total operating expenses -87.6 -71.9 22% Impairments of credits
Slide 16: Comparable operating profit
Comparable operating profit 1–6/2021 vs 1–6/2020 ⚫ +68% underlying profit growth (without unrealised value changes) EUR million 42.9 Comparable Net interest Net Actuarially Value Other net income Other Operating Model-based Other Comparable operating income commission calculated changes from investm
Slide 17: The financial targets 2025
The financial targets 2025 Comparable Comparable Comparable Common Equity operating profit return on cost-to-income Tier 1 capital ratio above EUR 120 Equity (ROE) ratio under 0.60 (CET1) above 1.5 million above 12% percentage points over the regulatory requirement 1–6/2021; 30 June 2021; 1–6/2021;
Slide 18: Financial targets 2025: Division of operating income
Financial targets 2025: Division of operating income Overview EUR million 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net commission income Net interest income from lending and borrowing Net income from life insurance Interest income from the banks liquidity portfolio Income from interest rate hedg
Slide 19: Growth within all business areas
Growth within all business areas Increased net commission income mainly from funds and wealth management NCI CAGR ~7% (2021-2025) ASSET MANAGEMENT Increased net interest income from Increased revenues from life insurance, growth in lending to targeted private focus on broadened unit linked offering
Slide 20: Increased operational efficiency
Increased operational efficiency Focus on improved cost to income ratio Streamline daily operations Comparable operating costs to reduce running costs EUR million Focus on development and better productivity 27% Improve efficiency through further simplifying and automating processes Stronger busines
Slide 21: A good and stable dividend payer
A good and stable dividend payer − compelling return considering the low risk level Aktia’s dividend policy (unchanged): 60–80% of annual net result Aktia’s dividend pay out in total 2012‒2020 Aktia’s dividend per share 2012‒2020 EUR million EUR 45 42.6 0.70 0.54 42.1 0.61 39.9 0.60 37.8 0.57 40 36.
Slide 22: Development of Aktia's comparable return on equity
Development of Aktia’s comparable return on equity Aktia’s comparable return on equity (ROE) % 14.0 12.0 12.0 10.2 10.0 8.9 9.1 8.1 7.9 8.0 7.5 6.7 6.0 4.0 2.0 0.0 2015 2016 2017 2018 2019 2020 2Q2021* 2025 Target *) (YTD 6/2021 *2)/Average equity((31.12.2020 + 30.6.2021)/2) AKTIA CMD 2021 8 Septem
Slide 23: Sound funding profile
Sound funding profile Covered Bond issuance and customer deposits dominate • Borrowing from the public STABLE CREDIT RATINGS: and public-sector entities Moody’s: A1 / P-1 CB: Aaa, S&P: A- / A-2 increased to EUR 4,560 (4,466) 1.4% 9.4% million. Aktia’s market share of deposits was 3.0% (3.1%) at the
Slide 24: Redemption schedule
Redemption schedule The year 2021 is gentle on redemptions but growth and future redemptions increase funding volumes. Potential T2 ISSUE FOR EUR million Aktia life in on the drawing board. 1,400 1,200 1,000 800 600 400 200 0 2021 2022 2023 2024 2025 2026 Central Bank funding Issued certificates
Slide 25: CET1 ratio at a solid level
CET1 ratio at a solid level Capital Adequacy At the end of the period, the Bank Group’s Common CET1 Equity Tier 1 (CET1) capital ratio was 10.8% Capital ratio, % Buffer, % • Target range at the end of period 9.2–10.7% 20 10 • AT1 requirements now covered with AT1 capital 18 16.5 9 15.6 15.9 15.7 15.
Slide 26: Impairments for future expected credit losses
Impairments for future expected credit losses Change in expected credit losses (ECL) 1–6/2021 EUR million Impairment of credits and other • Impairments on credits and other commitments commitments 1–6/2021 EUR -3.6 million increased to EUR -3.6 (-3.2) million, of which the change in the allowance fo
Slide 27: Outlook 2021
Outlook 2021 Aktia maintains its previous outlook in which the comparable operating profit for 2021 is expected to be considerably higher than during 2020 (maintained) • The increase in net interest income is expected to continue owing to strong volume increase and reasonable financing expenses • Th
Slide 28: Aktia Q&A
Aktia CMD Aktia Q&A AKTIA CMD 2021 8 September 2021 28
Slide 29: Aktia Asset Management
Aktia Asset Management Perttu Purhonen
Slide 30: Asset Management is the spearhead and anchor in Aktia's strategy
Asset Management is the spearhead and anchor in Aktia’s strategy The spearhead of Aktia’s strategy, providing the talent and offering necessary to prove the positioning and offer first- class asset management services. ASSET MANAGEMENT We focus on: Increased net commission income from funds and othe
Slide 31: The best Wealth Manager in Finland
The best Wealth Manager in Finland The wealth manager Excellence in asset A pioneer of modern with discrete luxury management with a and responsible wealth proven track-record management The primary partner for institutions, Best-in-class competence in Offering our clients unique and bold individual
Slide 32: We continue to deliver on our strategy to win in wealth management
We continue to deliver on our strategy to win in wealth management Assets under management excluding custody (AuM) EUR million 15,582 16,000 14,000 12,000 10,447 10,379 9,853 10,000 8,353 7,628 8,000 6,234 5,597 6,000 4,000 2,000 0 2015 2016 2017 2018 2019 2020 31 Mar 2021 30 Jun 2021 Household cust
Slide 33: Broad capabilities and offering to drive growth in all our customer segments
Broad capabilities and offering to drive growth in all our customer segments Private Domestic International Household Banking institutions customers customers The primary partner for The leading advisor and Focused offering of a few best- A holistic approach to help our individuals and entrepreneurs
Slide 34: Two strong asset managers merged together
Taaleri reported Exceptional portfolio management with a proven track record. Two strong The average Morningstar rating for investment funds, per 7/2021 as a part of Aktia since 5/2021 asset 4.50 managers 4.00 merged 3.50 together 3.00 Aktia won first place in all 2.50 three Fund House categories* 1
Slide 35: Great foundation in becoming the most preferred asset manager
Excellent service tailored to our customers’ needs. Proven by independent research and our customers SCANDINAVIAN FINANCIAL RESEARCH Allrounder series (Aktia): Great foundation Platinum Award: 2010, 2012, 2013. Gold Award: 2011, 2015, 2016, 2017, 2019,2020 in becoming Challenger series (Taaleri): Pl
Slide 36: Integration continues according to plan
Integration continues according to plan • Customer satisfaction has remained on good levels and even improved among transferred customers • Cross-selling and additional sales started immediately • First wave of fund mergers has been completed • Concrete revenue and cost synergies have started to mat
Slide 37: Broadening alternative and impact investments through partnership with Taaleri Oyj
We broaden our offering of alternative and impact investments through the strategic partnership with Taaleri Oyj • The partnership provides our customers with investment solutions with a positive impact on society and the environment. • Strategic partnership with Taaleri Oyj progressing well with ne
Slide 38: Aktia Banking
Aktia Banking Anssi Huhta
Slide 39: Banking business balances the portfolio and brings in secure revenue
Banking business balances the portfolio and brings in secure revenue through cross-sales The banking business grows selectively and profitably within the business area and through cross-sales. Focus is on acquiring and developing a customer base of companies, ASSET entrepreneurs and individuals who
Slide 40: Growth in total loan book continues
Growth in total loan book continues Total loan book EUR +160 million (+2%) Q-o-Q EUR million 7,400 Key highlights 700 7,299 7,300 Loan book and new lending has 600 7,200 grown well, with 10% growth 7,139 from Q2/2020 7,100 500 7,000 19% growth in Corporate 7,000 400 customers and 6% growth in 6,900
Slide 41: Our target customers
Our target customers We seek growth among individuals, entrepreneurs, companies and institutions who want to increase their wealth. Our top priority is to ensure that our customers can see the whole picture of their full potential - with the synergy and convenience of asset management, financing, ba
Slide 42: We want to be the first choice for entrepreneurs, individuals and companies
We want to be the first choice for entrepreneurs, individuals and companies who want to increase their wealth The primary advisor for The leading wealth manager Excellent customer experience entrepreneurs and companies bank for holistic advisory to driven by efficient digital individuals services A
Slide 43: People thinking further continue to be the focus in Household Banking
People thinking further continue to be the focus in Household Banking We seek growth among private customers who Delivered want to increase their wealth. These are individuals Customer satisfaction within Household Banking or households who want to increase their wealth, Customers on excellent level
Slide 44: SMEs are the core segment within Corporate Banking
SMEs are the core segment within Corporate Banking We seek growth among SMEs with established Delivered business and private ownership located in Strong growth among of SMEs, +18% growth in gross Finland's growth areas. income 2020. • Our spearhead offering is finance solutions, Customer satisfactio
Slide 45: We continue to reshape our service model to excellent customer experience
We continue to reshape our service model to excellent customer experience AKTIA CMD 2021 8 September 2021 45
Slide 46: Solid foundation for profitable growth and becoming the wealth manager bank
Solid foundation for profitable growth and becoming the wealth manager bank First phases of the Customer Strong and steady Focus on wealth service model satisfaction on increase in net management has renewal delivered excellent level* interest income increased monthly savings From 34 branch NPS 73 a
Slide 47: Aktia Sustainability
Aktia Sustainability Markus Lindqvist
Slide 48: Drivers for our sustainability development
Drivers for our sustainability development 1. Growing client expectations Our high standard is set by the most demanding institutional clients Banks have a central role in society, 2. Stakeholder materiality analysis channeling cashflows Helping us prioritise the Corporate Social and enabling transa
Slide 49: Why global megatrends matter
Why global megatrends matter Although our operations are local we have exposure as well as impact to global ESG megatrends such as climate change, biodiversity, demographic trends and human rights through our global investment activities. AKTIA CMD 2021 8 September 2021 49
Slide 50: Sovereign ESG risk assessment
Sovereign ESG risk assessment Quantitative Aktia’s traffic light approach Qualitative AKTIA CMD 2021 8 September 2021 50
Slide 51: New climate strategy
New climate strategy We’ve developed a climate strategy, where we set targets and take action on climate within our investment activities, lending portfolio as well as our own operations. Investments Own operations To support the goals of the Paris Agreement we have set an objective that all Our obj
Slide 52: Aktia Q&A
Aktia Q&A
Slide 53: Aktia
Aktia